Moody’s Downgrades GM Debt. Look Who May Be Next…

Stocks were higher, boosted by lower oil and a
positive outlook from a Dow component.

At an analyst meeting today, Pfizer
(
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lowered ’05 guidance, to
2.00, saying it will be a "transition year" and forecast double-digit earnings
growth in 2006. The company faces patent expirations and there are safety
concerns over its popular painkiller, Celebrex. The company plans to invest $8
billion in 2005 for R&D and also said it would accelerate its stock buyback
program.  Pfizer announced a cost-cutting plan and by 2008 the company sees
cost savings of $4 billion. The stock is near a 5-year low and is trading up 3%
today.

Napster
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raised its Q4 revenue forecast, citing a large
jump in subscribers. The stock is trading up 14%.

American Greetings
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missed for Q4 and guided lower for Q1–to
0.25-0.30 vs the 0.35 estimate.

In a speech before the National Petrochemical d Refiners Association,
Greenspan
said the lack of growth in crude oil refining capacity was
"worrisome." He also said the current spike in oil prices may not last long.

Moody’s downgraded General Motors’
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debt ratings to Baa3, the
lowest investment grade rating. The move was not entirely unexpected but when
the news hit, the market sold off. Moody’s also said it was reviewing Ford’s
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debt for a possible downgrade.

Strong sectors were: Airlines
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+3.17%  
Pharmaceuticals

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$DRG.X |
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+2.31%  Healthcare Providers
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$HMO.X$ |
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+1.90%  

Weak sectors were: Oil
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-0.96%   Oil Services
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$OSX.X |
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-0.86%   Natural Gas
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-0.59%

Dow  +38.73 10,457.87
Nasdaq +8.25 1999.32
S&P 500 +5.25 1181.37

The dollar was -0.11 at
84.69

Crude Oil was -0.97 at
56.04

Gold was +1.30 at 424.60

ce=”Arial” size=”2″ face=”Arial”>Volume was 1.8 billion on the NYSE and 1.6
billion on the Nasdaq

Market breadth was positive.

NYSE Issues
Advancing 1836 Up Vol 956
Declining 1421 Down Vol 681
1.29 1.40
Nasdaq
Advancing 1567 Up Vol 822
Declining 1467 Down Vol 680
1.06 1.20

Stocks in the News

Lehman Bros. cut Morgan Stanley (MWD)
to underweight and boosted Google (GOOG)
to overweight from equal weight.

Identix (IDNX)
won a $600,000 contract from the Pennsylvania State Police.

Boston Scientific (BSX)
got FDA approval for an enhanced Taxus stent, which allows for an immediate MRI.

Brice Wightman